DataRoom AM: Macquarie power play
After taking a very cautious approach coming out of the financial crisis, Macquarie Group is on the acquisition trail once more. But is Europe the best place to park its cash?
Elsewhere, SAI Global’s suitors prepare final offers as a valuation question mark lingers and the IPO market starts to rev up as firms seek to cash in before the year’s out.
Macquarie Group, which has been kicking the tyres on a number of potential deals this year, is in the running for a $3 billion suite of Spanish power assets put up for auction by Germany’s E.ON, with KKR, CVC and Borealis forming the core of rival bidders, according to The Australian Financial Review. Macquarie could also be in the mix for Italian power assets likely to hit the market later this year as part of a wider European power push.
Meanwhile, SAI Global's lucrative contract with Standards Australia is in focus, as the latter warns takeover target SAI to adequately disclose details surrounding the deal. According to the AFR, SAI’s contract with Standards Australia runs out in four years and early signs are that Standards Australia will hold out for a much better deal for the next contract. Such news could impact the $1bn offers currently being drawn up by suitors Pacific Equity Partners, KKR and The Carlyle Group ahead of this Friday’s bid deadline.
In the IPO market, RetireAustralia is believed to be ready to again kick-start the IPO process after last month putting its plans on the backburner. The nation’s largest retirement village operator is tipped to begin a roadshow next month ahead of a $500m listing.
Another potential IPO candidate, professional services firm GHD, has said it has no intention of going to the listing route. The company’s chief Ian Shepherd considers its growth prospects to be better in private hands.
Elsewhere, garage doors maker ArcPac Building Products is starting its investor roadshow this week as it seeks a valuation above $150m through a bookbuild later this month, while Australian Careers Network Group has joined the flood of education providers lining up for a listing, the AFR reports. ACN is eyeing a float in late October to raise $50m, with Petra Capital managing the process.
Also joining the IPO queue is retailer Winnings Appliances, which has hired Citi and JPMorgan as advisers, according to the AFR. The retailer is hoping to hit boards before the end of the year, but it might prove a tight timeline.
In resources, the rapidly descending iron price has claimed one of its first victims in junior miner Western Desert Resources. The firm was forced to file for bankruptcy at the end of last week after Macquarie Bank opted against an extension on a debt facility that had been drawn down by $80m. The failed firm’s leading shareholder is pubs and hotels mogul Bruce Mathieson.
Finally, key BHP Billiton shareholders in the UK, Australia and South African have hinted support for the firm’s $15bn demerger plan, while there are growing expectations that Boral is seeking to expand in North America, with the firm’s low gearing indicating a war chest for acquisitions, according to the AFR.